I have been reading, from the beginning, the story regarding the “RM2.0 billion plus” received from a Saudi Prince, by the Prime Minister as a “DONATION” .

I was asked what happened to the DONATION.
Was the Prime Minister TAXED on that amount received ?

I have no idea.

HOWEVER, on checking, it was found that, the AG , Apandi Ali, in his OFFICIAL Statement, CONFIRMED THAT US$681 mil (RM2.08 billion then) was indeed transferred , into the account of the PM, between March 22, 2013, and April 4, 2013. (AG’s Statement on 26 January 2016 ).

The Statement was made almost 3 years LATER.

Not long after that, it was OFFICIALLY announced that a “PART of the donation was RETURNED to the donor”.

This “RETURNED” portion was US$620 mil out of the total ” donation” of US$681 mil.

It MEANT that US$61 million (about RM236 .65 mil at today’s rate) WAS KEPT BACK in the PRIME MINISTER’S ACCOUNT.

My friends and I became very curious. We would like to ASK and can LHDN, please CLARIFY and EXPLAIN to the people at large:

1) Is the DONATION GIVEN to the Prime Minister, and transferred INTO HIS PERSONAL ACCOUNT, TAXABLE ?
2 ) IS HE a REGISTERED TAX EXEMPT CHARITABLE ENTITY OR is he not?
3.) Are DONATIONS not regarded as INCOME and therefore taxable on the recipient?
4.) If the donation received by the Prime Minister was ‘TAX EXEMPT’, how was this allowed by LHDN?

PLEASE explain, as I am not an Accountant, as are also my friends , we do NOT know, how such “donations” to INDIVIDUALS are treated.

DID the Prime Ministet set up a Tax exempt CHARITABLE ENTITY?

DID he set up a Trustee account with DESIGNATED signatories? IF SO, who are the signatories ?

Or did HE operate the account HIMSELF ?
IF he DID, then we would like to ASK , did the Prime Minister have FULL control to DECIDE , to whom , and how, the money was to be spent ?

Was it for:
1. Political purposes?
2. Non-profit organizations?
3. Charity?
4. Islamic activities? (since there was some statements that one reason for the donation to the Prime Minister, was supposed to be for his ” good work for Islam”) ?

Can LHDN please explain how was the “RETURNED part of the Donation” treated in terms of TAX ?
Is THERE PROOF of the money ACTUALLY HAVING BEEN RETURNED ?

HAS the Lembaga Hasil Dalam Negeri ( LHDN) , OFFICIALLY sought clarifications on the DETAILS OF the “DONATION” ?

The Public STILL continue to ask many questions to this day.

( I have been told , THAT LHDN has been ZEALOUSLY harassing and raiding offices, and premises , in the PRIVATE sector to COLLECT all kinds of “back taxes”.
In MOST cases its “PAY FIRST, explain later”.
IN FACT there are COMPLAINTS THAT , for some years, the LHDN HAD been REFUNDING TAX OVER-PAYMENTS TO SOME TAXPAYERS. Then in 2017 , the very SAME Taxpayers were suddenly accused of “UNDERDECLARATION” and TOLD TO PAY UP INCLUDING ARREARS AND HEFTY PENALTIES )

ON the issue of THE DONATION to the PM, it was surely NOT OFFICIALLY MENTIONED anywhere, as being A “POLITICAL DONATION” ?

TPM Zahid said in his statement ..QUOTE “the donation was out of belief in him (PM) and his leadership on key issues”.

AG Apandi said, QUOTE “There was NO reason given as to why the donation was made to PM Najib, that is between him and the Saudi family”.

IS IT POSSIBLE, for just ANY ORDINARY MALAYSIAN, to SOMEHOW obtain US$ XXX millions from someone , somewhere ..and then DECLARE IT AS A “DONATION”, WITHOUT the need to give THE REASON for the DONATIONS , and MERELY citing it is a “PRIVATE ARRANGEMENT” between the donor and the recipient?
WILL the LHDN simply TAKE THE INDIVIDUALS’ WORD FOR IT , and NOT INVESTIGATE in order to VERIFY ?

Or are there DIFFERENT STANDARDS being applied for different people ?
Please EXPLAIN and VERIFY.
My friends and I , and am SURE, the PUBLIC at large, are still curious and perplexed .

Can the LHDN please INVESTIGATE THIS case ,as has been DONE for all OTHER cases of unpaid taxes, and due taxes on the ORDINARY MALAYSIANS, and the PRIVATE SECTOR ?

AFTER ALL, in this PARTICULAR CASES of “DONATION” , the LHDN will AGREE, that the amount of US$61 million ,is NO SMALL CHANGE. (LET ALONE US$ 681 million).

MOREOVER, THIS IS A CASE INVOLVING THE PRIME MINISTER who is ALSO the MINISTER OF FINANCE, someone who is OVERALL RESPONSIBLE for LHDN, and should thus SHOW, the HIGHEST STANDARDS of Responsibility, Transparency and Good Governance.

Can someone illuminate us all please ?

Please CONFIRM, that the donation was INDEED RECEIVED by the Prime Minister and TRANSFERRED into HIS PERSONAL ACCOUNT.

6 Comments

Ronlim

May 18, 2018 at 14:11

Inland Revenue obviously has no answer to give the good Lady short of shooting its own foot. Be that as it may TSR’s letter has been enlightening enough and conveyed the sentiments of the good people who are so relieved that finally “something’s gonna give”and a few heads will roll!

Though I made effort to retrieve those housing loan mortgage documents from my loaned bank over 10 years old to show to LDHN that this amount of interest can be offsetted from my rental incomes but they declined citing reason that I did not show on time and this costs me almost Rm100K taxed to LDHN failing which I was “threatened” in letter that I would not be able to leave Msia…this is how ordinary citizen being bullied to pay up those taxes. I still keep those documents hopefully justification of rightness can be reached in the near future.

The previous year 2016 LHDN suppose to pay me back RM1000. They send out a letter that within 3 months they will reimbuse the said amount. Till today they hv not done it. There should be a law if LHDN never refund on time to the tax payer they should pay interest on the money their r holding. Hope the PH govt will protect the rakyat in this matter. This will enhance the LHDN efficiency in paying back their dues. I m sure there r many of u in the same boat like me.